Foreclosures Climb in This Major City – and Even the Most Elite ZIP Codes Aren’t Spared
Industry Update
July 17, 2025
Source: Realtor.com
New York City saw a double-digit increase in foreclosure rates this spring, with mortgage defaults affecting even some of Manhattan’s most prestigious ZIP codes—although the borough did not lead in home seizures.
New York City’s overall foreclosure rate jumped 11% in the second quarter of 2025, covering the months of April-June, compared with a year ago, according to the latest metro foreclosure report from PropertyShark.com.
Home to 1,628,000 people, the borough of Manhattan experienced 46 new foreclosure filings this spring, representing a 15% year-over-year hike.
Eight of the defaults were concentrated in the high-priced 10022 ZIP code, which includes a portion of Park Avenue—famous for its luxury homes, upscale shops, and immaculately landscaped flower beds.
According to the latest available data from Realtor.com®, the median list price in the 10022 ZIP code was $1.3 million in June, making it one of the priciest areas in the Big Apple—but even this high concentration of wealth offers no guarantee against property repossession.
“Rising interest rates, broader economic distress, and the end of [COVID-19] pandemic-era protections against foreclosure could both be influencing foreclosure trends, even in historically wealthy areas like ZIP 10022,” says Realtor.com senior economic research analyst Hannah Jones. “This uptick in filings suggests that even the luxury market is feeling the stress of today’s broader economic uncertainty.”
Jones points out that “old money does not guarantee liquidity, and high carrying costs and interest rates could be weighing on owners.”
Another important thing to note is that Midtown Manhattan has long been a magnet for real estate investors, and according to Jones, the rise in foreclosures could signal that demand has softened for high-end rentals.
Brooklyn overtakes Queens for most foreclosures
In Q2 2025, Brooklyn earned the dubious distinction of dethroning Queens as New York City’s most bustling foreclosure market, with 129 first-time filings from April to June—a 36% increase from a year ago.
Having overtaken Queens, Brooklyn now has the city’s top foreclosure hot spot, identified as ZIP code 11236 covering the neighborhoods of Canarsie and East Flatbush, which logged 17 new cases.
Meanwhile, Queens registered 128 foreclosures during the second quarter, down 20% year over year.
Bronx foreclosures hit five-year high
In the Bronx, foreclosures surged a staggering 73% on an annual basis, rising from 33 first-time filings in spring 2024 to 57 this year. The borough has surpassed its five-year foreclosure record that it reached at the start of 2025.
Staten Island saw 48 foreclosure filings this spring, up 25% from the same period a year ago, making it the Big Apple’s fourth-busiest foreclosure market.
As previously mentioned, Manhattan recorded just 46 new cases in Q2, solidifying the borough’s status as New York City’s least active borough for property repossessions.
Two-family homes drove the city’s overall foreclosure activity, accounting for a third of the 408 cases filed across New York City from April through June.
Additionally, two-family homes saw the sharpest uptick in filings, increasing 25% year over year, as single-family foreclosures edged down 2%.
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